UK 2028 Student Loan

UK 2028 student loan repayments are 9% of income above the plan threshold (6% for Postgraduate Loan). Plan 1 £24,990, Plan 2 £28,470, Plan 4 (Scotland) £32,745, Plan 5 (post-Aug-2023 starters) £25,000 frozen for 40 years. Multiple plans = separate repayments.

Plan 5 — 40 Year Write-Off

Plan 5 applies to undergraduate starters from Aug 2023 in England. Threshold £25,000 frozen for 40 years. Write-off after 40 years (vs Plan 2's 30 years). Lower interest rate (RPI only, no markup). Result: most graduates pay back fully. Effectively a graduate tax for high earners over their working life.

Threshold + Interest

Plan 2 interest: RPI + 0-3% based on income. Plan 1: lower of RPI / bank rate + 1%. Plan 5: RPI only. Repayment never below 0. Excess interest grows balance — but written off at end of loan term so often irrelevant for low-mid earners.

Voluntary Repayment

Always worth running the numbers before paying off voluntarily. Many graduates never repay in full and overpayment = waste. Calculate: years to write-off × expected payments vs current balance. Plan 5 (40-year, frozen threshold): most graduates pay full balance.

Last updated May 2026. Sources: Student Loan Co.